Hush-hush tactics mark start of fifth-freedom talks

NEGOTIATORS from Australia and Hong Kong were due to meet in Canberra today in their first round of talks on a new air services agreement since the two sides agreed in June to temporarily put aside their problems and start anew.

The talks, which are scheduled to run to Friday, are aimed at finding compromise on issues that had led to threats of tit-for-tat sanctions.

Phylomena Fung Tam Lap-chun, a spokesman for the Economic Services Branch, yesterday said the talks would be led by the same representatives as in past negotiations, with the two-person Hong Kong team headed by Principal Assistant Secretary for Economic Services Andrew Pyne.

Ms Fung would 'not give details on our strategy', but it was expected the territory would continue to demand that a formal cap be imposed on the number of passengers Qantas Airways could pick up from Hong Kong and carry onward to Singapore and Bangkok.

Kate Hannan, spokesman for Australia's Minister for Transport, Laurie Brereton, refused any comment, except to say there would be talks some time this month, adding: 'We don't give out any information any more.' Late in June the two sides narrowly averted a potentially crippling air war with officials agreeing after a tense 10-hour meeting to a complete overhaul of their existing aviation relationship.

The compromise saw both sides withdrawing threats that would have restricted travel between the two points.